Page 166 - India Insurance Report 2023- BIMTECH

154 India Insurance Report - Series II

Customer Education : The insurance penetration in India is abysmally low; one of the biggest reasons
for this is a lack of awareness. Insurers have to take concrete steps to educate customers about the
benefits of insurance and offer financial protection to an individual. Such awareness campaigns will not
only help spread the good word about insurance but will also build trust for insurers among people.

Proactive Communication : Insurers must communicate proactively with customers to inform them
about policy changes, new products, and other relevant information. This can help to build long-term
relationships and increase customer loyalty. These engagements also give you a better understanding of
what your customers want.

In short, insurance companies have to understand their customers and connect with them at various
levels to build long-term relationships and ultimately drive growth and profitability by focusing on the
customer. The adoption of customer-centric strategies has been shown to have a positive impact on the
bottom line of insurance companies. A study by McKinsey found that companies with high levels of
customer centricity outperformed their competitors by 80% in terms of sales growth. Furthermore,
companies that prioritise customer satisfaction have been found to enjoy higher retention rates and
increased customer loyalty and advocacy. According to a report by PwC, 80% of Indian insurance
customers expect personalized products and services. Insurers that can deliver such offerings are likely
to see higher customer satisfaction and loyalty.

4. What are the Best Practices for becoming a Customer-Centric Company?

There is no one-size-fits-all answer to this question; however, some best practices aim to foster a
customer-centric organizational culture.

4.1 Understand Your Customers’ Needs - To become a customer-centric company, you must
understand your customers’ needs. Conduct market research to understand what your customers want,
what they like, and what they don’t like. Analyse their behaviour and preferences to create personalised
experiences for them. Use customer feedback to improve your products and services continuously.

4.2 Make Customer Service a Priority - Customer service is critical to a customer-centric company.
Train your employees to provide exceptional customer service. Ensure that they understand the
importance of resolving customer issues promptly and efficiently. Respond to customer inquiries and
complaints quickly and efficiently. Make it easy for customers to reach out to you, whether it’s via
email, phone, or social media.

4.3 Create a Customer-Focused Culture - Creating a customer-focused culture is essential for becoming
a customer-centric company. Ensure that every employee, from top-level executives to entry-level staff,
understands the importance of putting the customer first. Encourage employees to go above and beyond to
make customers happy. Recognise and reward employees who provide exceptional customer service.

4.4 Use Customer Data to Improve Your Offerings - Use customer data to understand how
customers interact with your products and services. Analyse their behaviour to identify patterns and
trends. Use this information to make data-driven decisions to improve your offerings. Develop new
products and services based on customer feedback and preferences.